Patterns in the Foreign Ownership of U.S. Banking Assets

1. Why did foreign banks increase their holdings of U.S. banking assets and U.S. banks increase their holdings of foreign banking assets during the 1990s?

2. What organizational alternatives exist for foreign banks to establish a physical presence in the U.S.? Discuss the advantages and disadvantages of each alternative.

3. Despite the overall growth of foreign ownership of U.S. banking assets, those held by Japanese banks declined during the 1990s. Why did this occur?

Source: "Patterns in the Foreign Ownership of U.S. Banking Assets." Jose A. Lopez, Federal Reserve Bank of San Francisco Economic Letter, No. 2000-35, November 24, 2000, pp. 1-3.